So if you take someone (or two people) slim, small frame, and compare them piling on muscle vs. fat, the former is obviously healthier, and yet will see them be 'overweight' per BMI far sooner.
I don't have any clinical experience, IANAD, so take with mountains of salt etc., but I'd have thought a simple change that would go a long way would be to have say three BMI ranges instead of one (well, for a given country anyway!) categorised by eye-balling or self-reporting.